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tv   Worldwide Exchange  CNBC  February 9, 2017 5:00am-6:01am EST

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good morning. trumponomics, some of the nation's best known ceos react to the president's first weeks in office. twitter on tap. has president trump given the social media firm a bump? we'll get expert predictions this morning. and the northeast braces for thunder snow. thousands of flights canceled, schools closed. an up to date forecast is next. "worldwide exchange" begins right now. ♪
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>> we made it to work. good morning. welcome to "worldwide exchange" on cnbc. i'm sara eisen. >> i'm wilfred frost. the question is can we make it home again? we shall see. it's throwback thursday. >> "worldwide exchange" all day then. >> fine by my. not sure by the viewers. this throwback thursday, throwing it back with love songs ahead of valentine's day. i don't know this one. >> this is like oldie, classic oldies. >> lots more love songs to come. >> let's check in on world markets. this morning u.s. futures after a minor selloff on wall street yesterday, a mixed picture for stocks. dow futures up 2.5 points. s&p is flat. same with nasdaq futures. the action was in the bond market yesterday, ten-week yield slipped to multi week lows. there's been some buying in remember treasuries. seeing the caution in the bond
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market. it's brought the ten-year yield down below 2.40. we're at 2.59 on the ten-year. >> only a minor selloff. the story really was the resilience of the equity market in the face of -- >> big bond buying. >> did hurt some sectors. the banks down 1%, given their strong correlations to what yields are doing. resilience in the face of otherwise bearish factors. let's look at equity markets around the world. european trade is higher. france up a quarter of a percent. there's been big companies reporting positively in france this morning. and the rest of the region shrugging off negative headlines where the imf, europe and germany are clashing as for the best path forward.
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in japan, machine orders rose 6.7%. in china, car sales down 9.8%. general motors and ford blame the roll back of a tax cut on small engine vehicles and the lunar new year holiday. a look at trade, the nikkei is down 0.5%. bearish comments from bank of japan saying they need to keep the loose policy for longer. only at the margin bearish but suggested the economy is perhaps a little less strong than some might have hoped. hong kong and shanghai are higher. as for the broader market picture, oil has become an important mover for global markets. it's higher this morning by a percent on wti. as oil had been trending lower towards that key $50 mark, the market has been paying attention. oil went positive yesterday. that helped stocks regain some earlier losses. it closed higher by a third of a percent. bigger gains this morning.
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brent up 1%. 55.73. nat gas up 1.4%. cold weather here in the northeast, expecting snow, which has already begun falling here in new york and new jersey. >> crude still down a couple of a percent for the week, even including today's rebound. as for the u.s. dollar. let's show you what's happening. volatile lately. it's pretty much flat against the euro, 1.0696. stronger against the japanese yen by a third of a percent. 112.26. way off the recent highs. this has been tracking treasury yields. there's a big meeting between prime minister abe and president trump and everyone wants to know are they going to talk currencies? as far as investors are concerned, i would think the hope is not so much. trump has made some noise about japan, germany and china being manipulators. they all have trade deficits with the united states, taking advantage of their strong export economies. the truth is, i've done a lot of
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work on this, japan has not intervened in the currency markets since back in 2011. they have extraordinary monetary policy because they have a weak economy. they have to fight deflation. that is prime minister abe's argument. >> absolutely right. being critical of the euro and the yen for being too weak because they're still in lusz po loose policies is absurd, the u.s. just has come out of it already. critici criticizing germany is like saying the london pound is too weak or the new york dollar is too weak. it's part of a single currency. not much you can do about it. >> especially because germany has been opposed to the easy money policies. the dollar is higher for the week, 0.35%. it's set to break a four-week losing streak. interesting that what's happened while yields slipped significantly this week. the reason being is that the
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yields slipped more significantly elsewhere in the world, particularly in europe. the french ten-year yield is below 1%. that made news yesterday. the german yield has moved not quite as much lower, but in step as well. even though we have seen yields slip which would typically be bad for the dollar, yields slipped more elsewhere. so a bond buying trend globally this week. the dollar relatively has yields move less. >> let's show you gold. slightly stronger dollar this week. it's higher this morning, up 0.3%. gold has been an out-performer. climbing back, not near the highs we saw last fall, but back on the rise. >> absolutely. been a beneficiary of the dollar broadly not gaining as much over the last month. to politics, president trump has broken ice with chinese president xi jinping by writing him a letter. trump wished xi a happy new year and said he is looking forward
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to working with the chinese leader to develop relations. chinese media reports that president xi appreciated the letter and is willing to work with the u.s. to advance ties. this is trump's first communication with xi since he took office. >> it's an important factor considering the rhetoric so far from the white house has been more controversial, tougher when it comes to china. two of the biggest economies in the world. very important for trade and very important for corporate america. ceos are making their opinions known of president trump. last night on mad money, jeff immelt told jim cramer he likes some of the move that the president has made so far. >> there's a lot that i like in what president trump is doing. infrastructure, tax reform, regulatory reform. i think outside the u.s., jim, we're on our own. you have a highly global
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economy, we don't need trade deals to be effective. we can navigate the world on our own. i think it's up to me from an investor standpoint to be a good american company but still be able to do business in saudi arabia, china, brazil and we plan to keep doing that. >> immelt also said if he were to get called out by the president like other ceos have over job creation in the u.s., he would ask president trump to help level the playing field. jim pushed him on an america first with such a global economy like ge. he said we don't need to go through washington to expand through the world. that was the message from immelt. he also said he's in the sweet spot of trump policies because he's an exporter. so trump wants to make the u.s. more of an export-led economy. >> when given the chance to articulate the position like that, he made a clear argument this was not an anti american thing to be doing. the issue is when they get caught up in the short-term with 140 characters, they don't have time to respond quick enough in
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a way that the damage has already been done in some peoples eyes. he's not only ceo in the spotted light. cnbc caught up with fred smith when he was leaving the white house after a meeting with the vice president yesterday. he pointed to two key things the administration can do to help the economy. >> i've been vocal on behalf of the 496,000 people who make their living at fedex. we need to lean into trade not become more protectionist. fundamental problem in the last few years has been protectionist elsewhere, and we need to expand our exports. our tax policy should make it desirable to invest in the united states. we do those two things, our economy will do fine. >> yesterday i was at the yahoo finance summit. some of the most interesting takeaways were what ceos who had been at trump's business roundtable were saying about that meeting. they were incredibly upbeat.
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larry fink and mark weinberger of ey in terms of what's happening. yis mark weinberger said they were all given homework, things to go work on and come back with. sounds practical. we have not seen the fruits of these meetings yet, but people are upbeat about them. >> and just having fred smith at the white house, advising on issues like trade which is so critical to fedex and u.p.s.'s business may be an encouraging sign to the markets that he's getting advice and listening to those who have skin in the game and do not want to see a trade war, protectionism rising. maybe a softer tone. maybe the letter that president trump wrote to president xi is indicative of that. apple's chief executive tim cook condemning president trump's immigration ban during a speech in scotland. >> we have employees that
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secured a work visa, they located in the united states, they brought their family to the united states, they happen to be outside the united states when the executive order was issued, and all of a sudden their family is split. they couldn't get back in. and arguably that is -- that's a crisis. >> cook also discussed the importance of diversity to apple saying steve jobs was the son of an immigrant and that the tech giant depends on diversity. in other washington news, the senate has confirmed jeff sessions to be the next attorney general. sessions is expected to be sworn in this morning. and at the white house today, the president is set to meet with airline executives. the sitdown comes amid a crucial time over disagreements to terms given to foreign carriers. ceos and airport operators are expected to attend.
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the three largest carriers will push the trump administration to push treaties with foreign carriers. recently mideastern airlines have expanded into the u.s. making it tough competition. >> flag carriers, not even profitmaking. just backed by the state and it's hard to compete. >> they have a specific gripe, the airlines, that the president can tackle that, it does fit in with his deregulation theme. >> we'll see the headlines from that meeting throughout the day. neil gorsuch is calling president trump's criticism of the judiciary disheartening and demoralizing. gorsuch making the comment during a conversation with the senator. the president criticized judges and attorneys involved in a legal fight over his travel ban, specifically he called the federal judge in seattle who blocked the order last week a so-called judge. the u.s. district court has upheld a labor department fiduciary rule, which was
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created to avoid conflicts of interests when brokers give advice. trump ordered the labor department to review the rule last week. to today's agenda, a pair of economic reports and some fed speak. weekly jobless claims at 8:30 a.m. eastern. followed by december wholesale trade at 10:00. james bullard talks about the economy and monetary policy at 9:00 a.m. chicago fed president is speaking this afternoon. coca-cola, kellogg's, yum brand report before the bell. >> yum's ceo and coca-cola's incoming ceo both will be on "squawk box." let's focus on twitter for a moment. that's one where analysts expect 12 cents a share, down 4 krcent
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from last year. twitter has climbed back from lows. they're up from the last year. joining us on the cnbc news line is richard kramer. he is managing partner and senior analyst at arete research. good morning. thanks for joining us. >> good morning. >> what's the key factor to watch in the twitter report? >> well, i think by any stretch 2016 was a dreadful year for twitter. analysts started the year expecting 3.2 billion of revenue, they're hoping to do 2.5. they've seen margins collapse. their core o & o add growth, their own property's ad growth in the u.s. was negative third quarter. the company had itself up for sale in 2016 with no bids.
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really what people are looking for, is there a stop to the rot in the business? some of the moves you're citing there are short-term hopes that indeed there could be some green chutes somewhere, but we're not seeing them. just to correct you, our -- we had a sell on the stock when it was in the 50s, really, and wall street was sort of blindly embracing it. i think now there's a tremendous amount of skepticism about the twitter business model. you can see it reflected in the shares. >> you called a sell when it was at its highs or near the highs, what is your recommendation on the stock now? clearly there's question marks about the business, but the share price is lower. >> we still have a negative view on it. we haven't changed that for a couple of reasons. first of all, you've had a complete wholesale departure of the management team with one
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exception. it takes a long time to rebuild management and credible. second, there's been some calls in the market talking about how maybe there will be a positive trump effect for twitter. whatever your political views, it's clear trump is divisive. and this is not really a positive for advertisers. i think third, there's clearly tremendous and able competition for time spent and attention to twitter from not just google and facebook but increasingly from new entrants like snap. >> how is it they're not getting a boost in business from the fact that we have a president that is moving markets and making policies on twitter in 140 characters? >> that is painfully obvious in the sense this is not a platform advertisers will not want to associate themselves with. can you imagine nordstrom running a campaign on twitter,
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pre-buying it or planning it, these things don't get planned the day before or day after, finding out that the president is slating them on the same platform? there are certain types of internet content that advertisers don't regard as brand safe. and they also want to know, certainly when they consider advertising on cnbc, they know the type of content that they're going to be advertising against. in the case of twitter, with the abuse, the vitriol on it, a lot of brands don't want to be associated with that content. >> richard, great stuff. thank you very much forkramer j morning. twitter figures out this morning. it was up about 2% yesterday. still to come, the stocks to watch including anthem and cigna
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after a judge blocks their merger on antitrust grounds. we're also watching the weather for you. a live picture from the poconos in pennsylvania, new york and boston bracing for a foot of snow. schools are already closed. thousands of flights have been canceled. >> it had not started yet. >> it just started. i came in 20 minutes later than you. >> it just started? >> just starting here in new jersey. stay tuned, you're watching "worldwide exchange." she't ththi neayal esseven gnnghetake yrs isla dna ha olay?
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welcome back to "worldwide exchange." if you're just getting up, get up to speed with the market action. called higher, albeit fractionally. we are flat in the futures market following a day where we did see declines on the dow of 0.2%. the s&p and nasdaq fractionally positive. banks are the worst performing sector, down 1%. yields slipped once again below 2 pn 2.4% on the ten-year. oil has been negative for monday and tuesday. turned around intraday, that helped markets recover. they remained in positive turn this thursday morning at 1%. in corporate news, a federal judge has blocked the proposed $54 billion merger between health insurers anthem and cigna on antitrust concerns, this after a judge ruled against aet aetna's $33 billion acquisition
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of humana. still to come here, a curry comeback. the nba all-star takes a shot at the ceo of under armour over politics. stay tuned. you're watching "worldwide exchange."
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welcome back. the northeast bracing for a major winter storm today. stephanie abrams joins us from new york's columbus circle with an update.
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good morning. good morning. good morning to you at home. the snow just started to fall over the last couple of hours, it's going to intensify in about a 12-hour period we're going to see 8 to 12 inches of snow. so the snowfall rates will be two to three inches an hour at times. that's going to be blinding snow. the good news is it's a quick hitter. it's out of here by the time we get to 3:00, 4:00, at least for the new york city air. 8 to 12 inches here. 8 to 12 inches in philly. 8 to 12 inches in boston. we need the snow. we are running deficits around the region. schools are closed, philly, new york and boston. only the sixth time in the last seven years they shut down schools in new york city. there's even blizzard warnings on long island and the cape because winds will be gusty. they have the plows, 1600 plows for 6,500 miles of streets. they will do the best they can to keep up with it. >> thank you very much. you can see how it's picked up already since we left the city.
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>> i saw the salt trucks getting ready. >> kids are happy. now to sports, steph curry has a pointed reaction to under armour's ceo kevin plank's prize for trump. on tuesday plank told scott wapner that trump is good for american business. calling him an asset. in an interview with the san jose mercury news curry says i agree with that description if you remove the "et" from asset. under armour said it is focused on business issues, it's about policy, not politics. curry said he would leave if the line is crossed. he says if i can say the leadership is not in line with my core values, then there is no amount of money, there's no platform i wouldn't jump off if
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it wasn't in line with who i am. curry is under armour's most important athlete as you've learned from me. he's also their one hope of going international, because he's the one name. tom brady doesn't resonate in asia. he's the one name they know, love and buy shoes from. so obviously this relationship is important. under armour pushing back saying the xhecomments were taken out context. plank met with other manufacturing ceos at the white house, talking about policies, not praising donald trump himself. >> they're big in soccer as well, but in terms of u.s. sports -- >> who do they have. >> quite a few "power lunch" teams. some players. still to come, stocks to watch and a roundup of global markets. you're watching "worldwide
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good morning. markets now, futures pointing to a higher open. another busy day of earnings coming up. ceos speaking out. jeff immelt has a message for president trump. those details coming up. and bracing for a blast. thousands of flights canceled and schools closed as a major winter storm gets ready to hit the northeast. it's thursday, february 9, 2017. you're watching "worldwide exchange" on cnbc. ♪
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>> good morning. welcome to "worldwide exchange" on cnbc. i'm sara eisen. >> i'm wilfred frost. if you had not noticed, it's throwback thursday, throwing it back with love songs ahead of valentine's day. some very old ones. >> some of the best love songs are oldies. we'll play elton john for you later. let's check in on global markets. u.s. equity futures are mixed to flattish. maybe a higher start here on wall street. dow futures are up 8 points. s&p is up less than a full point. nasdaq is up 1.5. this after the dow slid yesterday. s&p and nasdaq closed higher. nasdaq good for a record close. it is in record territory. as for the early action in europe. let's show you what's happening now. early positive action with the german dax up almost three
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quarters of a percent. ftse 100 in the uk is flat, italy is red. overnight in asia, what we saw in terms of the action. there the nikkei closed closer by a half percent. hong kong and shanghai higher. >> oil prices have been pretty important this week. declined 3% the first couple of days, down this time yesterday, but rallied intraday, that pulled the broader market higher. higher again today. $53 on wti. still down about a percent and a half for the week as a whole. ten-year treasury note has been key for markets. seen quite a significant move lower in yields. bond buying, prices going higher, pushing the yields from close to 2.5% at the start of the week to 2.36%. that hurt banks yesterday. let's look at the dollar board.
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despite yields moving lower, the dollar has been stronger this week and is set to break a four-week losing streak. the dollar is up 0.35% for the week as a whole. the reason it's been able to move higher, yields have moved lower still in other regions, particularly in europe. the french ten-year is below 1% on election fears. we got that commentary earlier in the week from patrick harker that it's possible we could have a march rate hike. today the dollar is higher against the yen by a third of a percent. gold prices at highs not seen since the 10th of november. they've been the beneficiaries of softness in the dollar. >> if you look at the stock market action, the word is resilience and higher. it must be frustrating for the bears who have so many arguments from erratic policy tweets from the president, like what we saw in nordstrom action to the fact
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there's policy hopes baked in with little clarity on timing. there are questions about the federal reserve, raising interest rates, three times. the strong dollar. the list is long and the bullish number is high. if you look at investor intelligence reports, the number of bulls is at the highest level since 2005, which suggests things are getting exuberance, another reason bears say things are overdone. >> to contrast that, larry fink yesterday at the yahoo finance summit was saying he was concerned because consumer confidence numbers have picked up, that that is a leading indicator and positivity is priced into the market. the other observation is what mike santoli was saying on "closing bell," that stocks in the last three or four months of a rally have not had a
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meaningful positive day on a day where yields have been falling. so he this money is coming out of bonds and into equities. wh resilient is the right word to frame t but we won't get meaningful yields higher if rates are still slipping down. at the white house today, the president is set to meet with airline executives. the sitdown comes at a crucial time amid disagreements of terms granted to some foreign carri carriers. ceos and airport operators will attend. the three large efst carriers a set to push the president to renegotiate with europe. >> they also want to push for infrastructure spending on our nation's airports to upgrade them. something that president trump has talked about. ceos making their opinions about the president known.
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last night on "mad money," jeff immelt told jim cramer he likes what trump is doing so far. of course they also talked about trade. >> we're not an exporter. we're a $20 billion u.s. exporter. we export way more than we imported. i think at the end of the day, we have 5% of the world's population and 25% of the world's gdp. we create great jobs here when we sell our products every place. the president knows that. >> he also made the point that he doesn't need trade deals to keep expanding overseas and doing business abroad. he doesn't go through washington for that sort of thing. >> great interview with jim cramer last night. socgen reporting a 41% drop in q4 net income. but that still topped expectations. the lender announcing plans for an ipo of its car leasing business. shares are up 2% this morning. commerzbank reporting better
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than expected profits but the lender's cfo says he expects moderate capital impacted due to changes in accounting practices. shares off 3%. the institute of international finance out with a global report on capital flows. the headline? private capital flows to emerging markets barely expected to increase this year. with more on the report we're joined by hung tran. tell us the significance of the fact that money has slowed down when it comes into moving into emerging markets. >> yes, it has slowed down, particularly compared with the high level of modern 2$200 million the earlier part of this decade, and if you look at it as a share of em gdp, more than 8% in the years before the
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financial crisis to allow 2.5% at the moment. as such, these flows are likely to decline in supporting em, economic activity. >> what about china in particular? we are always focused on the trend of capital outflows out of china and where reserves are at. is that at a worrying level in your eyes? >> the capital outflow from china is probably around $560 billion estimated for this year. declining somewhat from 654 billion net outflow last year, 2016. driving it is basically the desire by china to diversify savings and on a global basis. that means the chinese authorities will control the outflow, including using reserves to soften the impact on the renminbi.
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the reserves of china already dipped below the level from january. >> we covered that. hung, where is the money going? is it flowing into the u.s.? >> basically capital outflow from emerging market countries is driven from the outflow from china. and it goes to holding overseas assets, including we also see s investment is flowing from emerging market to other emerging markets. the outlook for the dollar for the rest of the year? >> the outlook of the dollar is between growth friendly policy of the new administration being drawn out and implemented, but it's more a story for later this
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year or 2018. and trade protectionism, restriction of capital flow and even immigration. so, between the forces, probably i see a trading range for the dollar in the immediate period ahead. >> hung, thanks for joining us this morning on this brand-new report breaking at 5:30 a.m. eastern. always important to track the capital flow data, especially when you have a multi-year decade-long move of money going into emerging markets, helping their economies and markets and suddenly coming to a halt. >> absolutely. something to watch. on the earnings front. twitter will report quarterly results before the bell. landon dowdy has three key things to watch. >> the street is looking for twitter to post earnings of 12 cents a share on revenue of $740 million. here's the three things you wanted to watch. first, users, will twitter see a
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bump from trump. president trump has not shied away from taking to twitter. most analysts don't think this is enough to boost monthly active users. however twitter has been upgraded to buy saying more people were downloading the app, which should translate into ref knew growth in the second half of 2017. second, corporate turnover. the social media giant has lost more than a dozen key employees. investors will want to know how ceo jack dorsey plans to keep his executive people intact. and harassment on the site has been a top complaint. they say they face an uphill battle, and if they solve the issue they could draw more users or keep the existing ones. twitter down about 3% in the past three months. >> thank you very much for that. top trending stories. hudson bay is keeping ivanka trump's merchandise on shelves
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for now. a company spokesperson telling cnbc that across our banner we aim to have a strong assortment of facial shun. fashion. customer choices inform our decisions on which merchandise we offer. this comes after nordstrom became the latest target of president trump's twitter attacks following the company's decision no longer to carry ivanka's line. trump tweeting my daughter, ivan ivanka, hwhat has been treated so unfairly by nordstrom. she is a great person. always pushing me to do the right thing. terrible." nordstrom shares dipped for a few seconds on the tweet, and then came way back up and had their best day in a while. just getting all the attention.
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makes you wonder if the trump effect is positive. he bashes the "new york times," subscription surges. what is this trump effect? >> it's confusing issue to issue. it is fascinating how he is defending a family member and you can see that he's defending his daughter. you can understand one side of it, but the conflict of issue interest comes up again. >> he's not just another guy defending his daughter, he's the president of the united states defending her business. let's talk about a fictional president. get ready for a frank underwood action figure. it looks like netflix is planning to jump into the toy business. the video streaming provider posting a job for a licensing merchandising and promotion senior manager whose job it will be to pursue consumer products. netflix saying it's in the experimental phase of that
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project. not sure frank underwood toys would do that well. >> they take these strong franchises, and they have a major consumer products division. sort of a media company. we'll see if netflix can do a similar type move. you wouldn't buy a frank underwood action figure? >> a weird thing for me to own. >> you did impersonate him. >> but that's different. coming up, the must read stories and we're watching the weather. we have a live picture from times square, new york. new york and boston bracing for a foot of snow. schools are already closed and thousands of flights are canceled. ♪
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yon'yopartnethat founn,an dnser welcome back to "worldwide exchange." now to some must-read stories catching our attention in the papers today. my pick in the "wall street journal," obsessing over the n yen. >> did you write it yourself? >> it's about president trump meeting with president abe tomorrow. the "wall street journal" writes done focus on the currency since mr. trump's election the yen has fallen to $112 to the from 102 this suggests that economic prospects are better while japan is mired in stagnation. u.s. treasury yields have been rising prompting investors to unwind bets that last year's stronger yen would continue. the currency if it is week and
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president trump has complained as much, it's a difference between the u.s. and japanese currencies, feds tightening, boj loosening. it would not be wise they say to focus on currencies because it would confuse the market and there's no a real strong case for the u.s. there to make. this is all about relationship building. prime minister abe will play golf at mara l mar-a-lago on s. >> it would be grade to be a caddy for that day. >> to -- >> you are saying you would have to pretend. if they asked me for club advice, i wouldn't have a clue. i would get found out. approaching the top of the hour. the team is getting ready for "squawk box." steve liesman has a look at what's coming up. >> joepebble beach for a big sh
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tomorrow. today we have melissa along with michelle, and we will talk to ben lerer. steve balmer will be in the house. we'll talk about banking. william cohen, the former defense secretary and josh baer. and we'll talk off the bat about the fed and whether or not the market has really priced out march too much, and whether or not it ought to think about coming back in with that big speech coming next week from janet yellen who will be testifying on the hill. i'm looking at a 4% chance of a hike in march. some people think maybe the market is overdone in terms of pricing out that march hike. fed could be back on the table. >> great stuff. look forward to it in 11 minutes time on "squawk box." still to come on "worldwide exchange," getting ready for the day ahead. earnings the top of the agenda, and rich steinberg will have his strategy. stay tuned. you're watching "worldwide
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welcome back to "worldwide exchange." futures are mixed. essentially flat as we were really by the close yesterday. the dow was slightly higher. all are slightly positive. sorry. the dow was slightly lower, the s&p and nasdaq were positive. let's discuss markets with rich steinberg from steinberg global asset management. thank you very much for joining us. we've seen yields slip this week. ten-year has gone from 2.5 to 2.35%. is it impossible for stocks to rally meaningfully while yields are slipping? >> i don't think it's impossible for the markets to rally here. the one concern i have, i've been in the business since the mid '80s, the bond guys are always smarter than the equity guys. so it is a bit of a red flag to see yields pull back while the
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fed is starting language to move forward with bumps up in rates. steve liesman, who was on before, made an interesting point. money was off the table for a march hike, but maybe if yields pull back it would give the fed wiggle room to make a move because the bond market has pulled back. i think in general one of the big issues is consensus now is for 2.3, 2.5% gdp growth. the administration is talking about 3% to 4% gdp growth. the bond guys are seeing something that we aren't. it may be a pause in policy or a delay in infrastructure spending and tax deals until the healthcare bill gets resolved. >> or maybe it's just pushing out their bets for a fed rate hike and not factors in three this year and one in march,
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maybe it's not a verdict on some of the trump policies. >> that may be the case. there's a shift in money away from dividend paying stocks, and the money moves to large value and small cap. and maybe what investors need to do is not complete abandon the dividend plays because rates may not go up as fast as people had anticipated and to be in competition for some of those dividend paying stocks and broaden where the rally started after the trump election and have some money on the sidelines in case we get a pull back. this is the 36th or 37th consecutive day without a 1% intraday move in the s&p. you have to go back to 1996 to see that happen. my father taught me don't sell a dull market short. we could have moves either way. >> what's your view on the dollar? is it influencing your sector and equity choices?
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>> where the is effecting me most, i don't think the dollar will get as strong as people think. there's ban move away from multinational stocks, especially in the dividend names affected. when you listen to earnings report, and we're not seeing the revenue growth or misses, people have to be careful about a strong dollar starting to affect some of the largest cap names. small cap less of an issue. for the s&p, 30% of revenues are overseas. it has a larger impact. >> are the higher than average, higher valuations for stock, is there an impediment? >> until we see earnings come through better, the market right now last year ended at $118 in
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earnings. consensus estimates are at $132. that's an 11% move. if we have a stronger dollar, it will be difficult. but we're trading at 17 plus times earnings right now. unless we get major moves in fiscal policy, in tax policy, in trade, it's unlikely for investors to give a higher market multiple to the s&p. the only way we would crunch a lot higher is if earnings really come through quite a bit. a strong tax deal would add $6 in earnings to the s&p. but i think there will be compromises along the way. >> rich, thank you very much for joining us. 20 seconds left. coke earnings coming out, you'll be watching that. >> coke earnings. the company is in the middle of a transition. the incoming ceo will be on with
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us on "squawk on the street." we'll be watching that and twitter twit twitter earnings before the bell.
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good snowy morning if you live in the northeast united states. talk on "squawk box," trumponomics, some of the nation's best known ceos react to the president's first weeks in office. we will have jeff immelt, fred smith and tim cook. that's straight ahead. reports from coca-cola and twitter expected in the next hour. we'll get you ready, tell you what to expect. and the northeast bracing for thunder snow. thousands of flights already canceled, schools are closed in new york city and other places. an up to the-minute forecast is
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coming up. it's thursday, february 9, 2017, "squawk box" begins right now. live from new york where business never sleeps, this is "squawk box." good morning, welcome to "squawk box," i'll melissa lee along with michelle caruso-cabrera, along with steve liesman. tomorrow we have becky live from the links of pebble beach. the nasdaq after posting yet another record high in yesterday's session looking to add one point at open. the dow and s&p looking to open slightly higher. looking at the action overnight in asia, we will see


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